Agreement In Principle (AIP) Info

questricky8

Hi All, I am looking to buy a house for the first time. So, I am just looking for some insight on how to get on the housing ladder. Anyway, I found a house that like. I can put down a deposit which will pay for around 10% for the value of the house that I am looking to purchase.

I am seriously considering making an Decision in Principle application. But before I do that I just have a couple of questions to ask. Once I have made the the Agreement in Principle application and if the mortgage lender comes back and says yes you meet the criteria is it then legally required, enforceable? Can I still back out if I have second thoughts? Finally, how long do AIP checks typically take? What happens after getting an AIP?

Thank You

Edi81

An AIP is not legally enforceable. It is simply an indication of how much they will lend you subject to full checks. 

You would be best off talking to a broker who will hold your hand through the process. 

ACG

A decision in principle is not legally binding on either side. 

Jonboy_1984

Edi81 said:

You would be best off talking to a broker who will hold your hand through the process. 

This - we used a local broker for our first purchase and they were brilliant at both explaining all the in's and out's of a mortgage, estimating our actual budget for buying, and then also sorting out Northern Rock related hassle at the 11th hour...